Trump offers bailiff based on pricing income

“We are going to take part of this price that we have won, we will give it to our farmers, who, for a long time, will be injured until the prices are embarking on their advantage,” Trump told journalists in the oval office on Thursday. “So we are going to make sure that our farmers are in great shape, because we take a lot of money.”

Agriculture Secretary Brooke Rollins said last week that the administration weighed this action.

The White House did not immediately respond to FortuneThe request for comments on details concerning the bailout.

Farmers – A historically faithful constituency of the Trumps – sounded the alarms on the way in which the administration tariffs exacerbated the commercial disputes that have endangered the American export markets while the production costs remain stubbornly high or even increase.

“The frustration is overwhelming,” said the president of the American Soybean Association (ASA) Caleb Ragland on Wednesday. “The agricultural economy suffers while our competitors supplant the United States on the largest soybell import market in the world.”

The Treasury Secretary, Scott Bessent, said that on Wednesday, that the United States would provide financial support to Argentina when he tries to stabilize his economy. As part of its stabilization efforts, Argentina eliminated its export tax on soybeans, and China would have ordered 10 cargoes of the harvest of the country of South America. China received almost a quarter of American soy -soy exports in 2024, but has not ordered any American soybeans since May. Rather, the country has turned to cheaper alternatives from Argentina and Brazil, which have continued to engulf the US market share over the past decade.

The National Corn Growers Association was also distraught, corn prices plunging more than 50% compared to their 2022 peak while production costs have only decreased by 3% at the same time. Corn and soybeans represented 45% of the United States rent receipts in 2024, according to the American department of agriculture.

Meanwhile, the costs of inputs for production continue to raise. The August data monitor of the Agricultural Commercial Monitor of the Northern Dakota University indicate that rates of rates for self -propelled machines and tractors are 15%, while herbicide levels and certain pesticides are 25% due to current commercial disputes.

Trump’s trade was already

Trump’s previous actions to bail out farmers have had a mixed success. Many problems that afflict American farmers today are a Redux of the problems that have arisen in the president’s first mandate.

American farmers have lost $ 27 billion in agricultural exports between mid-2018 and 2019 following a trade war with China, according to a 2022 USDA report. The first Trump administration responded to the crisis with a bailout of 28 billion dollars for farmers, effectively erasing immediate economic losses. But the erosion of the long -standing business war market, said farmers and economists.

“The point to remember that we have data from the last time we did is that the United States has lost around 20% of our market share, and it has never returned,” the director of development of the Illinois market Soybean Association told Todd Main, said Fortune.

According to Wendong Zhang, an associate professor of economics and applied policy at SC Johnson School of Business at Cornell University, financial support for farmers today would have similar consequences.

“It will compensate for the immediate economic losses due to the prices, but that does not necessarily improve the long -term competitiveness of agriculture on the world scene,” said Zhang Fortune.

Farmers have clearly indicated their position, arguing that a trade agreement with China is the best way to support the agricultural export industry, which reached $ 176 billion in 2024.

“We can develop anything. What we really want are good relations with our business partners, “said the principal of Illinois Soybean Association. “We want markets. We do not want renown. ”

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